APPLE’S GLOBAL STRATEGY
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Introduction
Apple Inc. has globalized its business in the design, development and retailing in computer software and hardware, mobile devices, consumer electronics and its online services offerings (Sahoo, 2012, p. 39). The success of the company in the global business is attributed to the design and implementation of a winning global business strategy which is based on an understanding of the changing nature of global business. In addition, Apples cultural competence in markets across the world has allowed it to become highly competitive within the mobile device, computing and consumer electronics markets (Chan, Pun & Selden, 2013, p. 102). On the basis of this understanding, this paper examines Apple’s success within the global business environment with a view of evaluating how the formulation of a global business strategy within the company and its adaptability to the changing business environment and cultural values of consumers has allowed it to gain competitive advantage within the international market environment.
Formulation of a Global Business Strategy
Apple’s strategic goal of expanding its market share within the global business environment motivated it to formulate and implement a global business strategy through which it would access the international market for its portable digital music devices and players, mobile phones and applications and the Mac computer devices and software (Haslam, Tsitsianis, Ya Ping & Andersson, 2013, p. 273). Apple’s global business strategy was specifically formulated around its core business drivers. These are creativity, innovation and added value. The company’s leadership encourages innovation and creativity across all of its global operations with a view of gaining a competitive advantage against its main business rivals, including Microsoft, Dell, Toshiba, Nokia, Motorola and Samsung (Linden, Kraemer & Dedrick, 2009, p. 142). It is through innovation that Apple is able to provide global consumers with unique mobile and computing products, which are aligned with their changing tastes and preferences for technology products.
Apple’s global strategy is also driven by the importance of thinking and acting global in defining the competitiveness of a company within the dynamic international business landscape. Because of this, Apple sells all of its computing and mobile phone products under the same Apple brand name in all markets across the world (Finkle & Mallin, 2010, p. 52). This is an effective strategy because it allows it to leverage its strong brand name and reputation for innovation to gain competitive advantages within the global business environment, which is characterized by a high level of rivalry and consumer power. In addition, Apple employs similar channels of distribution across all of its international markets. This strategy allows it to minimize the complexity of its supply chain, associated costs and to integrate its global business into the same business model and global strategy (Nair & Leng, 2012, p. 22). Furthermore, Apple employs the differentiation strategy in order to meet the diverse needs of consumers within the global market and grow its market share and profitability of its global business. This is illustrated by the fact that Apple offers global consumers varied products, such as iPad, MAC, iPhone and iPod. Through this strategy, Apple is able to reach out to diverse market segments within the global market, which are defined by their divergent and changing needs and preferences (Cusumano, 2008, p. 23).
Apple’s Adaptability to the Changing Global Business Climate
Cultural Competence in Global Business
Application of the International Trade Theory
Conclusion
References
Chan, J, Pun, N, & Selden, M 2013, 'The politics of global production: Apple, Foxconn and China's new working class', New Technology, Work & Employment, 28, 2, pp. 100-115
Cusumano, M 2008, 'Technology Strategy and Management: The Puzzle of Apple', Communications of the ACM, 51, 9, pp. 22-24
Finkle, T, & Mallin, M 2010, 'Steve Jobs and Apple, Inc', Journal of the International Academy for Case Studies, 16, 8, pp. 49-57
Haslam, C, Tsitsianis, N, Ya Ping, Y, & Andersson, T 2013, 'Apple's financial success: The precariousness of power exercised in global value chains', Accounting Forum, 37, 4, pp. 268-279
Linden, G, Kraemer, K, & Dedrick, J 2009, 'Who Captures Value in a Global Innovation Network? The Case of Apple's iPod', Communications of the ACM, 52, 3, pp. 140-144
Nair, P, & Leng, Q 2012, 'The Sweet and Sour Apple: The Case of CEO Strategies at Apple Inc', Vidwat: The Indian Journal Of Management, 5, 1, pp. 21-24
Sahoo, D 2012, 'Strategic Change of Campaign at Apple Inc', Vidwat: The Indian Journal Of Management, 5, 2, pp. 38-48
